Owing to the increasing number of strategic partnerships being formed among major industry giants, the profitability landscape of metalworking fluids market has been witnessing a massive turnaround of sorts in the recent years, Testimony to the fact is the Univar Inc’s recent announcement of broadening its decades-old alliance with the Dow Chemical Company (Dow) to include exclusive distribution rights for its flagship UCON™ Fluids and Lubricants in the North American region. The latest collaboration is predominantly an attempt by both the firms to leverage the extensive supply chain network of Univar Inc, a renowned global chemical and ingredient distributor, to keep up with the fast-evolving metalworking fluids industry trends.
U.S. Metalworking Fluids Market Size, By Product, 2014 - 2025 (USD Million)
For the record, UCON™ is increasingly being recognized as a top brand of polyalkylene glycol (PAG) fluids across metalworking fluids market owing to its wide scale utilization in an assortment of applications and end use domains. Elaborating further, the new arrangement would not only witness the inclusion of UCON™ in the distribution chain of Univar but also comprise of UCON™ OSP, a product line of oil soluble PAG (OSP) base fluids. The addition of this product to Univar’s portfolio is being regarded as significant as it would enable manufacturers to integrate the benefits of a PAG synthetic base fluid with synthetic hydrocarbon and other oils to create a well-composed design that utilizes the pros of diverse chemistries.
Concurrently, it is rather overt that the strategic collaborations, such as the aforementioned instance, would undoubtedly result in manufacturing and efficient distribution of advanced lubricants that can provide low-temperature stability, enhanced wear performance, viscosity index, and deposit control. Moreover, the outcomes of such mutually-advantageous alliances would invariably boost the commercialization scale of the metalworking fluids industry in the forthcoming years, cite analysts.
Speaking along similar lines, one of the major trends being observed across metalworking fluids industry is that of the unveiling of technologically superior products that substantially enhance the sturdiness and efficiency of metalworking fluids. For instance, the foremost specialty chemicals firm LANXESS showcased a comprehensive range of products that specifically augment the durability of various lubricants at Metalworking Fluids Forum 2017 in Fellbach, Germany. The Cologne headquartered company reportedly launched o-phenylphenol (OPP) based products named as Preventol OF 45, Preventol O Extra, and Preventol ON Extra.
According to the press release of LANXESS, the utilization of OPP in concentrations up to 1,000 ppm in ready-to-use metalworking emulsions has been tested meticulously. These biocides depict exceptional properties such as outstanding stability and effective incorporation in fluids with high pH values. Unlike most biocides, they are not consumed when eliminating microorganisms which makes them highly suitable in safeguarding contaminated, difficult-to-preserve, and naturally manufactured substances such as emulsions consisting of mineral oil that are further utilized as metalworking fluids.
Seemingly, the launch of the new product range of LANXESS reinforces the fact that metalworking fluids market giants appear proactive in adopting environment-friendly products which would, in turn, optimistically influence the revenue share of this business sphere over the estimated timeframe.
Asia Pacific to be the chief growth terrain for metalworking fluids industry space
The swiftly expanding automotive, metal & steel fabrication, aerospace, and manufacturing sectors across the emerging nations of the Asia Pacific region have consequentially escalated the demand for metalworking fluids in this terrain. Moreover, the prominent metalworking fluids market contenders have focused on setting up manufacturing facilities in this region owing to industry-specific subsidies, export-oriented growth policies, tax incentives, and encouraging foreign direct investment plans being formulated by governments of developing nations such as India and China.
The aforementioned factors, in tandem with increased focus on product quality and sustainability, would profoundly impact the growth prospects of Asia Pacific metalworking fluids industry in the ensuing years. Accounting for a major portion of the overall metalworking fluids market in the year 2017, the Asia Pacific region, as per the research report compiled by Global Market Insights, Inc., is forecast to lead the growth trajectory of the global business space in the ensuing years.
Driven by an extensive application spectrum coupled with the launch of technologically advanced products, the overall metalworking fluids industry share is slated to expand at an exceptional pace in the times to come. In fact, as per reliable reports, the total remuneration portfolio of the global metalworking fluids market is estimated to surpass USD 15 billion by 2025.